Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ELF | |
Entity Registrant Name | e.l.f. Beauty, Inc. | |
Entity Central Index Key | 1,600,033 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 48,254,861 |
Condensed consolidated balance
Condensed consolidated balance sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Current assets: | |||
Cash | $ 33,648 | $ 10,059 | $ 5,677 |
Accounts receivable, net | 31,762 | 44,634 | 35,627 |
Inventory, net | 53,365 | 62,679 | 63,571 |
Prepaid expenses and other current assets | 6,756 | 6,272 | 8,302 |
Total current assets | 125,531 | 123,644 | 113,177 |
Property and equipment, net | 18,184 | 18,037 | 16,635 |
Intangible assets, net | 100,621 | 105,882 | 107,636 |
Goodwill | 157,264 | 157,264 | 157,264 |
Investments | 2,875 | 2,875 | 2,875 |
Other assets | 9,856 | 9,542 | 9,433 |
Total assets | 414,331 | 417,244 | 407,020 |
Current liabilities: | |||
Current portion of long-term debt and capital lease obligations | 9,067 | 8,646 | 18,140 |
Accounts payable | 16,072 | 26,776 | 21,007 |
Accrued expenses and other current liabilities | 10,803 | 15,939 | 12,937 |
Total current liabilities | 35,942 | 51,361 | 52,084 |
Long-term debt and capital lease obligations | 141,309 | 147,702 | 149,690 |
Deferred tax liabilities | 20,409 | 21,341 | 34,408 |
Other long-term liabilities | 3,050 | 2,977 | 2,878 |
Total liabilities | 200,710 | 223,381 | 239,060 |
Commitments and contingencies (Note 7) | |||
Stockholders' equity: | |||
Common stock, par value of $0.01 per share; 250,000,000 shares authorized as of September 30, 2018, December 31, 2017 and September 30, 2017; 47,994,581, 46,617,830 and 46,242,817 shares issued and outstanding as of September 30, 2018, December 31, 2017 and September 30, 2017, respectively | 471 | 463 | 459 |
Additional paid-in capital | 734,323 | 720,372 | 715,953 |
Accumulated deficit | (521,173) | (526,972) | (548,452) |
Total stockholders' equity | 213,621 | 193,863 | 167,960 |
Total liabilities and stockholders' equity | $ 414,331 | $ 417,244 | $ 407,020 |
Condensed consolidated balanc_2
Condensed consolidated balance sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | |||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 47,994,581 | 46,617,830 | 46,242,817 |
Common stock, shares outstanding (in shares) | 47,994,581 | 46,617,830 | 46,242,817 |
Condensed consolidated statemen
Condensed consolidated statements of operations and comprehensive income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 63,889 | $ 71,865 | $ 188,864 | $ 188,295 |
Cost of sales | 24,920 | 28,952 | 73,042 | 71,264 |
Gross profit | 38,969 | 42,913 | 115,822 | 117,031 |
Selling, general and administrative expenses | 32,656 | 33,133 | 102,681 | 98,843 |
Operating income | 6,313 | 9,780 | 13,141 | 18,188 |
Other income (expense), net | 360 | (379) | (19) | (1,422) |
Interest expense, net | (1,901) | (2,262) | (5,853) | (6,805) |
Income before provision for income taxes | 4,772 | 7,139 | 7,269 | 9,961 |
Income tax benefit (provision) | (857) | (1,274) | (1,416) | 2,034 |
Net income | 3,915 | 5,865 | 5,853 | 11,995 |
Comprehensive income | $ 3,915 | $ 5,865 | $ 5,853 | $ 11,995 |
Net income per share: | ||||
Basic (in USD per share) | $ 0.08 | $ 0.13 | $ 0.13 | $ 0.27 |
Diluted (in USD per share) | $ 0.08 | $ 0.12 | $ 0.12 | $ 0.24 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 46,765,366 | 45,813,801 | 46,610,155 | 45,132,567 |
Diluted (in shares) | 49,123,703 | 49,283,247 | 49,285,342 | 49,462,166 |
Condensed consolidated statem_2
Condensed consolidated statements of cash flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 5,853 | $ 11,995 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 12,905 | 10,676 |
Stock-based compensation expense | 12,464 | 9,720 |
Amortization of debt issuance costs and discount on debt | 596 | 605 |
Deferred income taxes | (914) | (1) |
Other, net | 192 | 435 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 12,795 | 1,993 |
Inventories | 9,314 | 5,837 |
Prepaid expenses and other assets | (2,766) | (13,030) |
Accounts payable and accrued expenses | (15,480) | (34,067) |
Other liabilities | 72 | (330) |
Net cash provided by (used in) operating activities | 35,031 | (6,167) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (6,456) | (4,371) |
Investment in equity securities | 0 | (2,875) |
Net cash used in investing activities | (6,456) | (7,246) |
Cash flows from financing activities: | ||
Proceeds from revolving line of credit | 2,000 | 24,100 |
Repayment of revolving line of credit | (2,000) | (14,600) |
Repayment of long term debt | (6,188) | (6,188) |
Debt issuance costs paid | 0 | (519) |
Cash received from issuance of common stock | 1,495 | 1,309 |
Other, net | (293) | (307) |
Net cash provided by (used in) financing activities | (4,986) | 3,795 |
Net increase (decrease) in cash | 23,589 | (9,618) |
Cash - beginning of period | 10,059 | 15,295 |
Cash - end of period | $ 33,648 | $ 5,677 |
Nature of operations
Nature of operations | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations | Nature of operations e.l.f. Beauty, Inc. (including its subsidiaries, the “Company,” “we,” “us,” “its” and “our”) was formed as a Delaware corporation on December 20, 2013 under the name J.A. Cosmetics Holdings, Inc. In April 2016, the Company changed its name to e.l.f. Beauty, Inc. The Company conducts business under the name e.l.f. Cosmetics, and offers high-quality, prestige-inspired cosmetic and skin care products at extraordinary value to consumers through its retail customers, as well as its e.l.f. stores and e-commerce channels. |
Summary of significant accounti
Summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | Summary of significant accounting policies Basis of presentation The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of the Company, these interim financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2018 and September 30, 2017 , and its results of operations for the three and nine months ended September 30, 2018 and 2017 , and cash flows for the nine months ended September 30, 2018 and 2017 . The condensed consolidated balance sheet as of December 31, 2017 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. All intercompany balances and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “Annual Report”). Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Segment reporting Operating segments are components of an enterprise for which separate financial information is available that is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Utilizing these criteria, the Company manages its business on the basis of one operating segment and one reportable segment. Significant accounting policies Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09 , Revenue from Contracts with Customers (Topic 606) ("ASC 606"). The Company made no other material changes in the application of its significant accounting policies that were disclosed in Note 2, “Summary of significant accounting policies,” to the audited consolidated financial statements as of and for the year ended December 31, 2017 included in the Annual Report. Revenue recognition Revenue is recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. For the Company's retail customer transactions, a contract exists when a written purchase order is received, and control transfers at the time of shipment or the time of delivery, depending upon the specific terms of the customer arrangement. For the Company's direct-to-consumer transactions, a contract exists when an order is placed online or in-store, and control transfers at the time of delivery of merchandise to the customer. Nearly all of the Company’s transactions with its customers include a single performance obligation delivered at a point in time. The transaction price can include both fixed and variable consideration. In most cases, it is entirely comprised of variable consideration with the variability driven by expected sales discounts, markdown support, and other incentives and allowances offered to customers. These incentives may be explicit or implied by the Company's historical business practices. Generally, these commitments represent cash consideration paid to a customer and do not constitute a promised good or service. The amount of variable consideration is estimated at the time of sale based on either the expected amount or the most likely amount, depending on the nature of the variability. The Company regularly reviews and revises, when deemed necessary, its estimates of variable consideration, based on both customer-specific expectations as well as historical rates of realization. A provision for customer incentives and allowances is included on the consolidated balance sheet, net against accounts receivable. Disaggregated revenue The Company distributes product both through national and international retailers as well as direct-to-consumers through its e-commerce and e.l.f. stores channels. The marketing and consumer engagement benefits that the direct channels provide are integral to the Company’s brand and product development strategy and drive sales across channels. As such, the Company views its three primary distribution channels as components of one integrated business, as opposed to discrete revenue streams. The Company sells a variety of beauty products but does not consider them to be meaningfully different revenue streams given similarities in the nature of the products, the target consumer, and the innovation and distribution processes. The following table provides disaggregated revenue from contracts with customers by geographical market, as the nature, amount, timing and uncertainty of revenue and cash flows can differ between domestic and international customers. Three months ended September 30, Nine months ended September 30, Net sales by geographic region: 2018 2017 2018 2017 United States $ 56,666 $ 63,320 $ 171,811 $ 169,649 International 7,223 8,545 17,053 18,646 Total net sales $ 63,889 $ 71,865 $ 188,864 $ 188,295 Contract assets and liabilities The Company extends credit to retail customers based upon an evaluation of their credit quality. The majority of retail customers obtain payment terms between 30 - 60 days, and a contract asset is recognized for the related accounts receivable. Additionally, shipping terms can vary, giving rise to contract liabilities for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of September 30, 2018 , other than accounts receivable, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its condensed consolidated balance sheet. Practical expedients The Company has elected to record revenue net of taxes collected from customers and exclude the amounts from the transaction price. The Company includes in revenue any taxes assessed on the Company's total gross receipts for which it has the primary responsibility to pay the tax. The Company has elected not to disclose revenues related to remaining performance obligations for partially completed or unfulfilled contracts that are expected to be fulfilled within one year as such amounts were insignificant. Recent accounting pronouncements The following table provides a brief description of recent accounting pronouncements that could have a material effect on the Company’s financial statements: Standard Description Date of expected adoption/adoption Effect on the financial statements or other significant matters Recently adopted accounting standards ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The new standard replaced all existing revenue recognition standards including industry-specific guidance and significantly expanded the disclosure requirements for revenue arrangements. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. January 1, 2018 The Company adopted ASC 606 on a modified retrospective basis, and recognized a net reduction of $0.1 million to the opening balance of retained earnings, net of tax for the cumulative effect of applying the new standard. The results for periods beginning after January 1, 2018 are presented under ASC 606, while comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of the new standard impacted net sales and accounts receivable. Net sales would have been $0.2 million and $0.8 million higher in the three and nine months ended September 30, 2018, respectively. Accounts receivable would have been $0.9 million higher under the previous standard as of September 30, 2018. ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities The standard makes targeted improvements to US GAAP, including significant revisions to an entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. January 1, 2018 The Company adopted this standard in the first quarter of 2018. The standard impacted the methods used to assess and identify impairment of its investments. Additionally, the standard eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value of financial instruments that are measured at amortized cost on the balance sheet. The standard had no impact on the Company's consolidated financial statements. Standard Description Date of expected adoption/adoption Effect on the financial statements or other significant matters Standards that are not yet adopted ASU 2016-02, Leases (Topic 842) The standard will require lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model (e.g., certain definitions, such as initial direct costs, have been updated) and the new revenue recognition standard. It requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application. January 1, 2019 The Company expects the standard to result in a material increase in long-term assets and long-term liabilities related to operating leases currently not recorded on the balance sheet. The Company is currently completing its implementation efforts and is continuing to evaluate other possible impacts of the adoption of this standard on its consolidated financial statements and related disclosures. ASU 2018-15, Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40) The standard will require customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Certain implementation costs incurred during the application development stage would be deferred and capitalized (e.g., costs of integration with on-premises software, coding, configuration, customization). Other costs incurred during the preliminary project and post-implementation stages would be expensed (e.g., planning the project, training, maintenance after implementation, data conversion). The amendments in the ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. January 1, 2020 The Company is currently evaluating the effect of the standard on its consolidated financial statements and related disclosures. |
Investment in equity securities
Investment in equity securities | 9 Months Ended |
Sep. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
Investment in equity securities | Investment in equity securities On April 14, 2017, the Company invested $ 2.9 million in a social media analytics company, which is included in investments on its condensed consolidated balance sheets. The Company has elected the measurement alternative for equity investments that do not have readily determinable fair values. The Company did not record an impairment charge on its investment during the three and nine months ended September 30, 2018 or 2017 , as there were no significant identified events or changes in circumstances that would be considered an indicator for impairment. Further, there were no observable price changes in orderly transactions for the identical or a similar investment of the same issuer during the three and nine months ended September 30, 2018 . |
Goodwill and intangible assets
Goodwill and intangible assets | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets Information regarding the Company’s goodwill and intangible assets as of September 30, 2018 , is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 68,800 $ (32,107 ) $ 36,693 Customer relationships – e-commerce 3 years 3,900 (3,900 ) — Favorable leases, net Varies 580 (452 ) 128 Total finite-lived intangibles 73,280 (36,459 ) 36,821 Trademarks Indefinite 63,800 — 63,800 Goodwill 157,264 — 157,264 Total goodwill and other intangibles $ 294,344 $ (36,459 ) $ 257,885 Information regarding the Company’s goodwill and intangible assets as of December 31, 2017 , is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 68,800 $ (26,947 ) $ 41,853 Customer relationships – e-commerce 3 years 3,900 (3,875 ) 25 Favorable leases, net Varies 580 (376 ) 204 Total finite-lived intangibles 73,280 (31,198 ) 42,082 Trademarks Indefinite 63,800 — 63,800 Goodwill 157,264 — 157,264 Total goodwill and other intangibles $ 294,344 $ (31,198 ) $ 263,146 Information regarding the Company’s goodwill and intangible assets as of September 30, 2017 , is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 68,800 $ (25,227 ) $ 43,573 Customer relationships – e-commerce 3 years 3,900 (3,867 ) 33 Favorable leases, net Varies 580 (350 ) 230 Total finite-lived intangibles 73,280 (29,444 ) 43,836 Trademarks Indefinite 63,800 — 63,800 Goodwill 157,264 — 157,264 Total goodwill and other intangibles $ 294,344 $ (29,444 ) $ 264,900 Amortization expense on finite-lived intangible assets was $1.8 million and $5.3 million in the three and nine months ended September 30, 2018 , respectively, and $1.7 million and $5.4 million in the three and nine months ended September 30, 2017 , respectively. Trademark assets have been classified as indefinite-lived intangible assets and accordingly, are not subject to amortization. There were no impairments of goodwill or intangible assets recorded in the three and nine months ended September 30, 2018 and 2017 . The estimated future amortization expense related to finite-lived intangible assets, assuming no impairment as of September 30, 2018 is as follows (in thousands): Remainder of 2018 $ 1,745 2019 6,982 2020 6,880 2021 6,880 2022 6,880 Thereafter 7,454 Total $ 36,821 |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities Accrued expenses and other current liabilities as of September 30, 2018 , December 31, 2017 and September 30, 2017 consisted of the following (in thousands): September 30, 2018 December 31, 2017 September 30, 2017 Accrued expenses $ 5,228 $ 9,422 $ 4,320 Other current liabilities 1,570 1,894 1,871 Accrued compensation 4,005 3,998 6,746 Income taxes payable — 625 — Accrued expenses and other current liabilities $ 10,803 $ 15,939 $ 12,937 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company’s outstanding debt as of September 30, 2018 , December 31, 2017 and September 30, 2017 consisted of the following (in thousands): September 30, 2018 December 31, 2017 September 30, 2017 Revolving credit facility (1) $ — $ — $ 9,500 Term loan (1) 148,659 154,418 156,332 Capital lease obligations 2,079 2,374 2,469 Total debt (2) 150,738 156,792 168,301 Less: debt issuance costs (362 ) (444 ) (471 ) Total debt, net of issuance costs 150,376 156,348 167,830 Less: current portion (9,067 ) (8,646 ) (18,140 ) Long-term portion of debt $ 141,309 $ 147,702 $ 149,690 (1) See Note 8, “Debt,” to the consolidated financial statements included in the Annual Report for details regarding the Senior Secured Credit Agreement (as defined below under the heading “Description of indebtedness”). (2) The gross carrying amounts of the Company’s long-term debt, before reduction of the debt issuance costs, and capital lease obligations approximate their fair values, based on Level 2 inputs (quoted prices for similar assets and liabilities in active markets or inputs that are observable), as the stated rates approximate market rates for loans with similar terms. The Company did not transfer any liabilities measured at fair value on a recurring basis to or from Level 2 for any of the periods presented. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Operating leases The Company leases office, retail and warehouse space in New York, New Jersey, California, Texas and China from third parties under non-cancelable operating leases that provide for minimum base rental payments (excluding taxes and other charges). A number of the Company’s store leases provide for contingent rental payments based upon sales. Contingent rental payments have historically not been significant. The leases expire between 2019 and 2028 . Total rent expense was $1.4 million and $4.3 million for the three and nine months ended September 30, 2018 , respectively, and $1.3 million and $3.8 million for the three and nine months ended September 30, 2017 , respectively. Future minimum lease payments under the operating leases are as follows (in thousands): Remainder of 2018 $ 1,371 2019 5,375 2020 5,210 2021 3,876 2022 2,832 Thereafter 10,025 Total $ 28,689 Legal contingencies From time to time, the Company may become involved in legal proceedings, claims and litigation arising in the ordinary course of business. The Company is not currently a party to any matters that management expects will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Stock-based compensation
Stock-based compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based compensation | Stock-based compensation Service-based vesting stock options The following table summarizes the activity for options that vest solely based upon the satisfaction of a service condition for the nine months ended September 30, 2018 : Options outstanding Weighted-average exercise price Weighted-average remaining contractual life (in years) Aggregate intrinsic values (in thousands) Balance as of December 31, 2017 2,597,294 $ 10.66 Granted 585,250 18.43 Exercised (147,210 ) 3.19 Canceled or forfeited (186,572 ) 9.77 Balance as of September 30, 2018 2,848,762 $ 12.70 7.7 $ 9,647 Exercisable, September 30, 2018 1,479,548 $ 9.06 6.9 $ 8,172 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company's closing stock of $12.73 , as reported on the New York Stock Exchange on September 28, 2018 (the last trading day prior to September 30, 2018 ). The Company recognized stock-based compensation cost related to service-based vesting options of $0.8 million and $2.4 million in the three and nine months ended September 30, 2018 , respectively, and $0.7 million and $1.8 million in the three and nine months ended September 30, 2017 , respectively. As of September 30, 2018 , there was $8.1 million of total unrecognized stock-based compensation cost related to unvested service-based stock options, which is expected to be recognized over the remaining weighted-average period of 2.7 years . All stock-based compensation expense is recorded in selling, general and administrative expenses. Performance-based and market-based vesting stock options The following table summarizes the activity for options that vest based upon the satisfaction of performance or market conditions for the nine months ended September 30, 2018 : Options outstanding Weighted-average exercise price Weighted-average remaining contractual life (in years) Aggregate intrinsic values (in thousands) Balance as of December 31, 2017 2,406,537 $ 6.58 Exercised (309,105 ) 3.32 Canceled or forfeited (22,250 ) 12.95 Balance as of September 30, 2018 2,075,182 $ 6.99 6.6 $ 17,748 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the Company's closing stock of $12.73 , as reported on the New York Stock Exchange on September 28, 2018 (the last trading day prior to September 30, 2018 ). The Company recognized stock-based compensation cost related to performance-based and market-based vesting options of $0.2 million and $1.1 million in the three and nine months ended September 30, 2018 , respectively, and $1.1 million and $2.9 million in the three and nine months ended September 30, 2017 , respectively. As of September 30, 2018 , there was $0.1 million of total unrecognized stock-based compensation cost related to unvested market-based stock options, which is expected to be recognized over a weighted-average period of 0.1 years . Restricted stock The following table summarizes the activities for restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) for the nine months ended September 30, 2018 : Shares of restricted stock outstanding Weighted-average grant date fair value Balance as of December 31, 2017 1,248,824 $ 23.37 Granted 1,277,485 17.96 Vested (337,115 ) 23.08 Canceled or forfeited (163,685 ) 20.27 Balance as of September 30, 2018 2,025,509 $ 20.25 As of September 30, 2018 , there were 885,520 unvested shares subject to RSAs outstanding. The Company recognized stock-based compensation cost related to RSAs and RSUs of $3.2 million and $9.0 million in the three and nine months ended September 30, 2018 , respectively, and $2.0 million and $5.0 million in the three and nine months ended September 30, 2017 , respectively. As of September 30, 2018 , there was $34.5 million of total unrecognized stock-based compensation cost related to unvested RSAs and RSUs, which is expected to be recognized over a weighted-average period of 2.9 years . |
Net income per share
Net income per share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net income per share | Net income per share The Company computes basic earnings per share using the weighted average number of common shares outstanding. Diluted earnings per share amounts are calculated using the treasury stock method for equity-based compensation awards. The following is a reconciliation of the numerator and denominator in the basic and diluted net income per common share computations (in thousands, except share and per share data): Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Numerator: Net income $ 3,915 $ 5,865 $ 5,853 $ 11,995 Denominator: Weighted average common shares outstanding - basic 46,765,366 45,813,801 46,610,155 45,132,567 Diluted common equivalents from stock options 2,314,970 3,241,620 2,543,927 4,064,723 Diluted common equivalents from restricted stock units 43,367 227,826 107,975 256,394 Diluted common equivalents from restricted stock awards — — 23,285 8,482 Weighted average common shares outstanding - diluted 49,123,703 49,283,247 49,285,342 49,462,166 Net income per share: Basic $ 0.08 $ 0.13 $ 0.13 $ 0.27 Diluted $ 0.08 $ 0.12 $ 0.12 $ 0.24 Anti-dilutive securities excluded from diluted EPS: Options to purchase common stock 2,194,124 601,749 2,091,634 503,516 Restricted stock units 849,977 444,274 566,810 13,688 Restricted stock awards 885,520 302,200 458,585 — Total 3,929,621 1,348,223 3,117,029 517,204 |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions On October 11, 2016, the Company entered into a sublease agreement with Fit for Life, LLC pursuant to which the Company subleased certain office and showroom space in New York, New York. The Chief Executive Officer of Fit for Life, LLC is a former member of the Company’s Board of Directors and a director and stockholder of J.A. Cosmetics Corp. In May 2018, J.A. Cosmetics Corp. ceased to be an affiliate of the Company. The Company recognized $0.1 million and $0.2 million in sublease income from Fit for Life, LLC in both the three and nine months ended September 30, 2018 and 2017 , respectively. The sublease terminated on August 31, 2018. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements and related notes have been prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of the Company, these interim financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2018 and September 30, 2017 , and its results of operations for the three and nine months ended September 30, 2018 and 2017 , and cash flows for the nine months ended September 30, 2018 and 2017 . The condensed consolidated balance sheet as of December 31, 2017 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. All intercompany balances and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “Annual Report”). Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Segment reporting | Segment reporting Operating segments are components of an enterprise for which separate financial information is available that is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Utilizing these criteria, the Company manages its business on the basis of one operating segment and one reportable segment. |
Revenue recognition | Revenue recognition Revenue is recognized when control of promised goods or services is transferred to a customer in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. For the Company's retail customer transactions, a contract exists when a written purchase order is received, and control transfers at the time of shipment or the time of delivery, depending upon the specific terms of the customer arrangement. For the Company's direct-to-consumer transactions, a contract exists when an order is placed online or in-store, and control transfers at the time of delivery of merchandise to the customer. Nearly all of the Company’s transactions with its customers include a single performance obligation delivered at a point in time. The transaction price can include both fixed and variable consideration. In most cases, it is entirely comprised of variable consideration with the variability driven by expected sales discounts, markdown support, and other incentives and allowances offered to customers. These incentives may be explicit or implied by the Company's historical business practices. Generally, these commitments represent cash consideration paid to a customer and do not constitute a promised good or service. The amount of variable consideration is estimated at the time of sale based on either the expected amount or the most likely amount, depending on the nature of the variability. The Company regularly reviews and revises, when deemed necessary, its estimates of variable consideration, based on both customer-specific expectations as well as historical rates of realization. A provision for customer incentives and allowances is included on the consolidated balance sheet, net against accounts receivable. Disaggregated revenue The Company distributes product both through national and international retailers as well as direct-to-consumers through its e-commerce and e.l.f. stores channels. The marketing and consumer engagement benefits that the direct channels provide are integral to the Company’s brand and product development strategy and drive sales across channels. As such, the Company views its three primary distribution channels as components of one integrated business, as opposed to discrete revenue streams. The Company sells a variety of beauty products but does not consider them to be meaningfully different revenue streams given similarities in the nature of the products, the target consumer, and the innovation and distribution processes. The following table provides disaggregated revenue from contracts with customers by geographical market, as the nature, amount, timing and uncertainty of revenue and cash flows can differ between domestic and international customers. Three months ended September 30, Nine months ended September 30, Net sales by geographic region: 2018 2017 2018 2017 United States $ 56,666 $ 63,320 $ 171,811 $ 169,649 International 7,223 8,545 17,053 18,646 Total net sales $ 63,889 $ 71,865 $ 188,864 $ 188,295 Contract assets and liabilities The Company extends credit to retail customers based upon an evaluation of their credit quality. The majority of retail customers obtain payment terms between 30 - 60 days, and a contract asset is recognized for the related accounts receivable. Additionally, shipping terms can vary, giving rise to contract liabilities for contracts where payment has been received in advance of delivery. The contract liability balance can vary significantly depending on the timing of when an order is placed and when shipment or delivery occurs. As of September 30, 2018 , other than accounts receivable, the Company had no material contract assets, contract liabilities or deferred contract costs recorded on its condensed consolidated balance sheet. Practical expedients The Company has elected to record revenue net of taxes collected from customers and exclude the amounts from the transaction price. The Company includes in revenue any taxes assessed on the Company's total gross receipts for which it has the primary responsibility to pay the tax. The Company has elected not to disclose revenues related to remaining performance obligations for partially completed or unfulfilled contracts that are expected to be fulfilled within one year as such amounts were insignificant. |
Recent accounting pronouncements | Recent accounting pronouncements The following table provides a brief description of recent accounting pronouncements that could have a material effect on the Company’s financial statements: Standard Description Date of expected adoption/adoption Effect on the financial statements or other significant matters Recently adopted accounting standards ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The new standard replaced all existing revenue recognition standards including industry-specific guidance and significantly expanded the disclosure requirements for revenue arrangements. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. January 1, 2018 The Company adopted ASC 606 on a modified retrospective basis, and recognized a net reduction of $0.1 million to the opening balance of retained earnings, net of tax for the cumulative effect of applying the new standard. The results for periods beginning after January 1, 2018 are presented under ASC 606, while comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of the new standard impacted net sales and accounts receivable. Net sales would have been $0.2 million and $0.8 million higher in the three and nine months ended September 30, 2018, respectively. Accounts receivable would have been $0.9 million higher under the previous standard as of September 30, 2018. ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities The standard makes targeted improvements to US GAAP, including significant revisions to an entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. January 1, 2018 The Company adopted this standard in the first quarter of 2018. The standard impacted the methods used to assess and identify impairment of its investments. Additionally, the standard eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value of financial instruments that are measured at amortized cost on the balance sheet. The standard had no impact on the Company's consolidated financial statements. Standard Description Date of expected adoption/adoption Effect on the financial statements or other significant matters Standards that are not yet adopted ASU 2016-02, Leases (Topic 842) The standard will require lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model (e.g., certain definitions, such as initial direct costs, have been updated) and the new revenue recognition standard. It requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application. January 1, 2019 The Company expects the standard to result in a material increase in long-term assets and long-term liabilities related to operating leases currently not recorded on the balance sheet. The Company is currently completing its implementation efforts and is continuing to evaluate other possible impacts of the adoption of this standard on its consolidated financial statements and related disclosures. ASU 2018-15, Intangibles-Goodwill and Other- Internal-Use Software (Subtopic 350-40) The standard will require customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Certain implementation costs incurred during the application development stage would be deferred and capitalized (e.g., costs of integration with on-premises software, coding, configuration, customization). Other costs incurred during the preliminary project and post-implementation stages would be expensed (e.g., planning the project, training, maintenance after implementation, data conversion). The amendments in the ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. January 1, 2020 The Company is currently evaluating the effect of the standard on its consolidated financial statements and related disclosures. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table provides disaggregated revenue from contracts with customers by geographical market, as the nature, amount, timing and uncertainty of revenue and cash flows can differ between domestic and international customers. Three months ended September 30, Nine months ended September 30, Net sales by geographic region: 2018 2017 2018 2017 United States $ 56,666 $ 63,320 $ 171,811 $ 169,649 International 7,223 8,545 17,053 18,646 Total net sales $ 63,889 $ 71,865 $ 188,864 $ 188,295 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Information Regarding Company's Goodwill and Intangible Assets | Information regarding the Company’s goodwill and intangible assets as of September 30, 2018 , is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 68,800 $ (32,107 ) $ 36,693 Customer relationships – e-commerce 3 years 3,900 (3,900 ) — Favorable leases, net Varies 580 (452 ) 128 Total finite-lived intangibles 73,280 (36,459 ) 36,821 Trademarks Indefinite 63,800 — 63,800 Goodwill 157,264 — 157,264 Total goodwill and other intangibles $ 294,344 $ (36,459 ) $ 257,885 Information regarding the Company’s goodwill and intangible assets as of December 31, 2017 , is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 68,800 $ (26,947 ) $ 41,853 Customer relationships – e-commerce 3 years 3,900 (3,875 ) 25 Favorable leases, net Varies 580 (376 ) 204 Total finite-lived intangibles 73,280 (31,198 ) 42,082 Trademarks Indefinite 63,800 — 63,800 Goodwill 157,264 — 157,264 Total goodwill and other intangibles $ 294,344 $ (31,198 ) $ 263,146 Information regarding the Company’s goodwill and intangible assets as of September 30, 2017 , is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 68,800 $ (25,227 ) $ 43,573 Customer relationships – e-commerce 3 years 3,900 (3,867 ) 33 Favorable leases, net Varies 580 (350 ) 230 Total finite-lived intangibles 73,280 (29,444 ) 43,836 Trademarks Indefinite 63,800 — 63,800 Goodwill 157,264 — 157,264 Total goodwill and other intangibles $ 294,344 $ (29,444 ) $ 264,900 |
Future Amortization Expense for Intangible Assets | The estimated future amortization expense related to finite-lived intangible assets, assuming no impairment as of September 30, 2018 is as follows (in thousands): Remainder of 2018 $ 1,745 2019 6,982 2020 6,880 2021 6,880 2022 6,880 Thereafter 7,454 Total $ 36,821 |
Accrued expenses and other cu_2
Accrued expenses and other current liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of September 30, 2018 , December 31, 2017 and September 30, 2017 consisted of the following (in thousands): September 30, 2018 December 31, 2017 September 30, 2017 Accrued expenses $ 5,228 $ 9,422 $ 4,320 Other current liabilities 1,570 1,894 1,871 Accrued compensation 4,005 3,998 6,746 Income taxes payable — 625 — Accrued expenses and other current liabilities $ 10,803 $ 15,939 $ 12,937 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The Company’s outstanding debt as of September 30, 2018 , December 31, 2017 and September 30, 2017 consisted of the following (in thousands): September 30, 2018 December 31, 2017 September 30, 2017 Revolving credit facility (1) $ — $ — $ 9,500 Term loan (1) 148,659 154,418 156,332 Capital lease obligations 2,079 2,374 2,469 Total debt (2) 150,738 156,792 168,301 Less: debt issuance costs (362 ) (444 ) (471 ) Total debt, net of issuance costs 150,376 156,348 167,830 Less: current portion (9,067 ) (8,646 ) (18,140 ) Long-term portion of debt $ 141,309 $ 147,702 $ 149,690 (1) See Note 8, “Debt,” to the consolidated financial statements included in the Annual Report for details regarding the Senior Secured Credit Agreement (as defined below under the heading “Description of indebtedness”). (2) The gross carrying amounts of the Company’s long-term debt, before reduction of the debt issuance costs, and capital lease obligations approximate their fair values, based on Level 2 inputs (quoted prices for similar assets and liabilities in active markets or inputs that are observable), as the stated rates approximate market rates for loans with similar terms. The Company did not transfer any liabilities measured at fair value on a recurring basis to or from Level 2 for any of the periods presented. |
Commitments and contingencies (
Commitments and contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Operating Leases | Future minimum lease payments under the operating leases are as follows (in thousands): Remainder of 2018 $ 1,371 2019 5,375 2020 5,210 2021 3,876 2022 2,832 Thereafter 10,025 Total $ 28,689 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity and Related Information | The following table summarizes the activity for options that vest solely based upon the satisfaction of a service condition for the nine months ended September 30, 2018 : Options outstanding Weighted-average exercise price Weighted-average remaining contractual life (in years) Aggregate intrinsic values (in thousands) Balance as of December 31, 2017 2,597,294 $ 10.66 Granted 585,250 18.43 Exercised (147,210 ) 3.19 Canceled or forfeited (186,572 ) 9.77 Balance as of September 30, 2018 2,848,762 $ 12.70 7.7 $ 9,647 Exercisable, September 30, 2018 1,479,548 $ 9.06 6.9 $ 8,172 The following table summarizes the activity for options that vest based upon the satisfaction of performance or market conditions for the nine months ended September 30, 2018 : Options outstanding Weighted-average exercise price Weighted-average remaining contractual life (in years) Aggregate intrinsic values (in thousands) Balance as of December 31, 2017 2,406,537 $ 6.58 Exercised (309,105 ) 3.32 Canceled or forfeited (22,250 ) 12.95 Balance as of September 30, 2018 2,075,182 $ 6.99 6.6 $ 17,748 |
Summary of Activities for Restricted Stock Awards ("RSAs") and Restricted Stock Units ("RSUs") | The following table summarizes the activities for restricted stock awards (“RSAs”) and restricted stock units (“RSUs”) for the nine months ended September 30, 2018 : Shares of restricted stock outstanding Weighted-average grant date fair value Balance as of December 31, 2017 1,248,824 $ 23.37 Granted 1,277,485 17.96 Vested (337,115 ) 23.08 Canceled or forfeited (163,685 ) 20.27 Balance as of September 30, 2018 2,025,509 $ 20.25 |
Net income per share (Tables)
Net income per share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator in Basic and Diluted Net Income (Loss) Per Common Share Computations | The following is a reconciliation of the numerator and denominator in the basic and diluted net income per common share computations (in thousands, except share and per share data): Three months ended September 30, Nine months ended September 30, 2018 2017 2018 2017 Numerator: Net income $ 3,915 $ 5,865 $ 5,853 $ 11,995 Denominator: Weighted average common shares outstanding - basic 46,765,366 45,813,801 46,610,155 45,132,567 Diluted common equivalents from stock options 2,314,970 3,241,620 2,543,927 4,064,723 Diluted common equivalents from restricted stock units 43,367 227,826 107,975 256,394 Diluted common equivalents from restricted stock awards — — 23,285 8,482 Weighted average common shares outstanding - diluted 49,123,703 49,283,247 49,285,342 49,462,166 Net income per share: Basic $ 0.08 $ 0.13 $ 0.13 $ 0.27 Diluted $ 0.08 $ 0.12 $ 0.12 $ 0.24 Anti-dilutive securities excluded from diluted EPS: Options to purchase common stock 2,194,124 601,749 2,091,634 503,516 Restricted stock units 849,977 444,274 566,810 13,688 Restricted stock awards 885,520 302,200 458,585 — Total 3,929,621 1,348,223 3,117,029 517,204 |
Summary of significant accoun_4
Summary of significant accounting policies - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Number of operating segments | segment | 1 | |||||
Number of reporting segments | segment | 1 | |||||
Payment terms | The majority of retail customers obtain payment terms between 30-60 days, and a contract asset is recognized for the related accounts receivable. | |||||
Retained earnings | $ (521,173) | $ (548,452) | $ (521,173) | $ (548,452) | $ (526,972) | |
Net sales | 63,889 | 71,865 | 188,864 | 188,295 | ||
Accounts receivable | 31,762 | $ 35,627 | 31,762 | $ 35,627 | $ 44,634 | |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings | $ (100) | |||||
Net sales | 200 | 800 | ||||
Accounts receivable | $ 900 | $ 900 |
Summary of significant accoun_5
Summary of significant accounting policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 63,889 | $ 71,865 | $ 188,864 | $ 188,295 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | 56,666 | 63,320 | 171,811 | 169,649 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Total net sales | $ 7,223 | $ 8,545 | $ 17,053 | $ 18,646 |
Investment in equity securiti_2
Investment in equity securities - Additional Information (Details) $ in Millions | Apr. 14, 2017USD ($) |
Social Media Analytics Company | |
Schedule of Cost-method Investments [Line Items] | |
Amount invested in minority equity investment | $ 2.9 |
Goodwill and intangible asset_2
Goodwill and intangible assets - Information Regarding Company's Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Total finite-lived intangibles, Gross carrying amount | $ 73,280 | $ 73,280 | $ 73,280 |
Total finite-lived intangibles, Accumulated amortization | (36,459) | (29,444) | (31,198) |
Total | 36,821 | 43,836 | 42,082 |
Goodwill, Gross carrying amount | 157,264 | 157,264 | 157,264 |
Goodwill, Accumulated amortization | 0 | 0 | 0 |
Goodwill, Net carrying amount | 157,264 | 157,264 | 157,264 |
Total goodwill and other intangibles, Gross carrying amount | 294,344 | 294,344 | 294,344 |
Total goodwill and other intangibles, Accumulated amortization | (36,459) | (29,444) | (31,198) |
Total goodwill and other intangibles, Net carrying amount | 257,885 | 264,900 | 263,146 |
Trademarks | |||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Indefinite lived intangibles, Net carrying amount | $ 63,800 | $ 63,800 | $ 63,800 |
Customer relationships – retailers | |||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Estimated useful life | 10 years | 10 years | 10 years |
Total finite-lived intangibles, Gross carrying amount | $ 68,800 | $ 68,800 | $ 68,800 |
Total finite-lived intangibles, Accumulated amortization | (32,107) | (25,227) | (26,947) |
Total | $ 36,693 | $ 43,573 | $ 41,853 |
Customer relationships – e-commerce | |||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Estimated useful life | 3 years | 3 years | 3 years |
Total finite-lived intangibles, Gross carrying amount | $ 3,900 | $ 3,900 | $ 3,900 |
Total finite-lived intangibles, Accumulated amortization | (3,900) | (3,867) | (3,875) |
Total | 0 | 33 | 25 |
Favorable leases, net | |||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||
Total finite-lived intangibles, Gross carrying amount | 580 | 580 | 580 |
Total finite-lived intangibles, Accumulated amortization | (452) | (350) | (376) |
Total | $ 128 | $ 230 | $ 204 |
Goodwill and intangible asset_3
Goodwill and intangible assets - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense related to intangible assets | $ 1,800,000 | $ 1,700,000 | $ 5,300,000 | $ 5,400,000 |
Impairments of goodwill or intangible assets | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and intangible asset_4
Goodwill and intangible assets - Future Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Remainder of 2018 | $ 1,745 | ||
2,019 | 6,982 | ||
2,020 | 6,880 | ||
2,021 | 6,880 | ||
2,022 | 6,880 | ||
Thereafter | 7,454 | ||
Total | $ 36,821 | $ 42,082 | $ 43,836 |
Accrued expenses and other cu_3
Accrued expenses and other current liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Payables and Accruals [Abstract] | |||
Accrued expenses | $ 5,228 | $ 9,422 | $ 4,320 |
Other current liabilities | 1,570 | 1,894 | 1,871 |
Accrued compensation | 4,005 | 3,998 | 6,746 |
Income taxes payable | 0 | 625 | 0 |
Accrued expenses and other current liabilities | $ 10,803 | $ 15,939 | $ 12,937 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Debt Instrument [Line Items] | |||
Total debt | $ 150,738 | $ 156,792 | $ 168,301 |
Less: debt issuance costs | (362) | (444) | (471) |
Total debt, net of issuance costs | 150,376 | 156,348 | 167,830 |
Less: current portion | (9,067) | (8,646) | (18,140) |
Long-term portion of debt | 141,309 | 147,702 | 149,690 |
Capital lease obligations | |||
Debt Instrument [Line Items] | |||
Total debt | 2,079 | 2,374 | 2,469 |
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Total debt | 0 | 0 | 9,500 |
Term Loan | |||
Debt Instrument [Line Items] | |||
Total debt | $ 148,659 | $ 154,418 | $ 156,332 |
Commitments and contingencies -
Commitments and contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Total rent expense | $ 1.4 | $ 1.3 | $ 4.3 | $ 3.8 |
Commitments and contingencies_2
Commitments and contingencies - Schedule of Future Minimum Lease Payments under Operating Leases (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2018 | $ 1,371 |
2,019 | 5,375 |
2,020 | 5,210 |
2,021 | 3,876 |
2,022 | 2,832 |
Thereafter | 10,025 |
Total | $ 28,689 |
Stock-based compensation - Summ
Stock-based compensation - Summary of Activity for Options Vest Solely Based upon Satisfaction of Service Condition (Details) - Service-based Vesting Stock Options $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Options outstanding | |
Beginning balance (in shares) | shares | 2,597,294 |
Granted (in shares) | shares | 585,250 |
Exercised (in shares) | shares | (147,210) |
Canceled or forfeited (in shares | shares | (186,572) |
Ending balance (in shares) | shares | 2,848,762 |
Options outstanding, Exercisable (in shares) | shares | 1,479,548 |
Weighted-average exercise price | |
Beginning balance (in USD per share) | $ / shares | $ 10.66 |
Granted (in USD per share) | $ / shares | 18.43 |
Exercised (in USD per share) | $ / shares | 3.19 |
Canceled or forfeited (in USD per share) | $ / shares | 9.77 |
Ending balance (in USD per share) | $ / shares | 12.70 |
Weighted-average exercise price, Exercisable (in USD per share) | $ / shares | $ 9.06 |
Weighted-average remaining contractual life (in years), Outstanding | 7 years 8 months 12 days |
Weighted-average remaining contractual life (in years), Exercisable | 6 years 10 months 24 days |
Aggregate intrinsic values, Outstanding | $ | $ 9,647 |
Aggregate intrinsic values, Exercisable | $ | $ 8,172 |
Stock-based compensation - Addi
Stock-based compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Closing stock price (in USD per share) | $ 12.73 | $ 12.73 | |||
Service-based Vesting Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation cost | $ 0.8 | $ 0.7 | $ 2.4 | $ 1.8 | |
Unrecognized stock-based compensation cost | 8.1 | $ 8.1 | |||
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 2 years 8 months 12 days | ||||
Performance-based and Market-based Vesting Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation cost | 0.2 | 1.1 | $ 1.1 | 2.9 | |
Unrecognized stock-based compensation cost | $ 0.1 | $ 0.1 | |||
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 1 month 6 days | ||||
Restricted Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested RSAs outstanding (in shares) | 885,520 | 885,520 | |||
Restricted Stock Awards and Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation cost | $ 3.2 | $ 2 | $ 9 | $ 5 | |
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 2 years 10 months 24 days | ||||
Unvested RSAs outstanding (in shares) | 2,025,509 | 2,025,509 | 1,248,824 | ||
Unrecognized stock-based compensation cost | $ 34.5 | $ 34.5 |
Stock-based compensation - Su_2
Stock-based compensation - Summary of Activity for Options Vest Based upon Performance or Market Conditions (Details) - Performance-based and Market-based Vesting Options $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Options outstanding | |
Beginning balance (in shares) | shares | 2,406,537 |
Exercised (in shares) | shares | (309,105) |
Canceled or forfeited (in shares) | shares | (22,250) |
Ending balance (in shares) | shares | 2,075,182 |
Weighted-average exercise price | |
Beginning balance (in USD per share) | $ / shares | $ 6.58 |
Exercised (in USD per share) | $ / shares | 3.32 |
Canceled or forfeited (in USD per share) | $ / shares | 12.95 |
Ending balance (in USD per share) | $ / shares | $ 6.99 |
Weighted-average remaining contractual life (in years), Outstanding | 6 years 7 months 6 days |
Aggregate intrinsic values, Outstanding | $ | $ 17,748 |
Stock-based compensation - Sum
Stock-based compensation - Summary of Activities for Restricted Stock Awards ("RSAs") and Restricted Stock Units ("RSUs") (Details) - Restricted Stock Awards and Restricted Stock Units | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Shares of restricted stock outstanding | |
Beginning balance (in shares) | shares | 1,248,824 |
Granted (in shares) | shares | 1,277,485 |
Vested (in shares) | shares | (337,115) |
Canceled or forfeited (in shares) | shares | (163,685) |
Ending balance (in shares) | shares | 2,025,509 |
Weighted-average grant date fair value | |
Beginning balance (in USD per share) | $ / shares | $ 23.37 |
Granted (in USD per share) | $ / shares | 17.96 |
Vested (in USD per share) | $ / shares | 23.08 |
Canceled or forfeited (in USD per share) | $ / shares | 20.27 |
Ending balance (in USD per share) | $ / shares | $ 20.25 |
Net income per share - Reconcil
Net income per share - Reconciliation of Numerator and Denominator in Basic and Diluted Net Income (Loss) Per Common Share Computations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income | $ 3,915 | $ 5,865 | $ 5,853 | $ 11,995 |
Denominator: | ||||
Weighted average common shares outstanding - basic (in shares) | 46,765,366 | 45,813,801 | 46,610,155 | 45,132,567 |
Weighted average common shares outstanding - diluted (in shares) | 49,123,703 | 49,283,247 | 49,285,342 | 49,462,166 |
Net income per share: | ||||
Basic (in USD per share) | $ 0.08 | $ 0.13 | $ 0.13 | $ 0.27 |
Diluted (in USD per share) | $ 0.08 | $ 0.12 | $ 0.12 | $ 0.24 |
Anti-dilutive securities excluded from diluted EPS: | ||||
Anti-dilutive securities excluded from diluted EPS (in shares) | 3,929,621 | 1,348,223 | 3,117,029 | 517,204 |
Stock Options | ||||
Anti-dilutive securities excluded from diluted EPS: | ||||
Anti-dilutive securities excluded from diluted EPS (in shares) | 2,194,124 | 601,749 | 2,091,634 | 503,516 |
Restricted Stock Units | ||||
Anti-dilutive securities excluded from diluted EPS: | ||||
Anti-dilutive securities excluded from diluted EPS (in shares) | 849,977 | 444,274 | 566,810 | 13,688 |
Restricted Stock Awards | ||||
Anti-dilutive securities excluded from diluted EPS: | ||||
Anti-dilutive securities excluded from diluted EPS (in shares) | 885,520 | 302,200 | 458,585 | 0 |
Stock Options | ||||
Denominator: | ||||
Diluted common equivalents (in shares) | 2,314,970 | 3,241,620 | 2,543,927 | 4,064,723 |
Restricted Stock Units | ||||
Denominator: | ||||
Diluted common equivalents (in shares) | 43,367 | 227,826 | 107,975 | 256,394 |
Restricted Stock Awards | ||||
Denominator: | ||||
Diluted common equivalents (in shares) | 0 | 0 | 23,285 | 8,482 |
Related party transactions - Ad
Related party transactions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Fit for Life, LLC | ||
Related Party Transaction [Line Items] | ||
Recognized sublease income | $ 0.1 | $ 0.2 |